CATCHMENT ANALYSIS Summer Internship Project

Submitted by: Mayank Arora (11RM925) PGDM (Retail)

INDUSTRY MENTOR: MR. NIKHIL BHASIN RETAIL OPERATION MANAGER SHOPPERS STOP, ROHINI

FACULTY MENTOR: Prof. Kapil Garg Bimtech, Greater Noida

Birla Institute Of Management Technology

TABLE OF CONTENTS
1. LIST OF TABLES 2. LIST OF CHARTS AND GRAPHS 3. LIST OF EXHIBITS 4. INDUSTRY MENTOR CERTIFICATE 5. ACADEMIC MENTOR CERTIFICATE 6. ACKNOWLEDGEMENT 7. LETTER OF TRANSMITTAL 8. LETTER OF AUTHORIZATION 9. EXECUTIVE SUMMARY 10. INTRODUCTION 11. COMPANY BACKGROUND 12. LITERATURE REVIEW 13. PROBLEM DEFINITION 14. APPROACH TO THE PROBLEM 15. RESEARCH METHODOLOGY 16. ANALYSIS & INTERPRETATION A. CUSTOMER PROFILE B. BUYING BEHAVIOUR C. COMPETITION MAPPING D. TRADING AREA ANALISIS 3 4 5 6 7 8 9 10 11 12 15 17 21 21 22 24 24 27 31 36

17. RESULTS AND CONCLUSION 18. LIMITATIONS AND CAVEATS 19. RECOMMENDATIONS 20. EXIBIT 21. REFERENCES

40 41 42 43 45

Birla Institute Of Management Technology

LIST OF TABLES
1. 2. 3. 4. 5. How long you have been associated with Shoppers Stop? Frequency of your visit to Shoppers Stop, Rohini? Which department you visit first? What brings you to Shoppers Stop? Comparative chart

Birla Institute Of Management Technology

LIST OF GRAPHS
Age Profession How long you have been associated with SSL Frequency of your visit to Shoppers Stop Which department you visit first Favourable shopping time What brings you to Shoppers Stop Price range Services offered Variety Style/Design Brand name Store layout Store ambience Quality Comparative chart Ranking Map of primary catchment Trading area analysis

Birla Institute Of Management Technology

LIST OF EXHIBITS
Questionnaire

Birla Institute Of Management Technology

INDUSTRY MENTOR CERTIFICATE

Birla Institute Of Management Technology

Summer Project Certificate

This is to certify that Mr. Mayank Arora Roll No. 11RM925 a student of PGDM-RM has worked on a summer project titled Catchment Analysis at SHOPPERS STOP (ROHINI) after Trimester-III in partial fulfillment of the requirement for the Post Graduate Diploma in Management programme. This is his original work to the best of my knowledge.

Date: ___/___/_____

Signature ______________

BIMTECH SEAL

(Prof. KAPIL GARG)

Birla Institute Of Management Technology

ACKNOWLEDGEMENT

I would like to gratefully acknowledge the contribution of all the people who took active part and provided valuable support to me during the course of this project. To begin with, I would like to offer my sincere thanks to NIKHIL BHASIN, RETAIL OPERATION MANAGER, for giving me the opportunity to do my summer training at SHOPPERS STOP (ROHINI). Without his guidance, support and valuable suggestions during the research, the project would not have been accomplished.

My heartfelt gratitude also goes to the entire LADIES DEPARTMENT team for their co-operation and willingness to answer all my queries, and provide valuable assistance.

I also sincerely thank Prof. KAPIL GARG, my faculty mentor at BIMTECH, who provided valuable suggestions, shared his rich corporate experience, and helped me script the exact requisites.

Last, but not least, I would like to thank all Customers and Employees for sharing their experience and giving their valuable time to me during the course of my project.

Birla Institute Of Management Technology

Letter of Transmittal
Date: JUNE/22/2012

Mr. NIKHIL BHASIN, 3B-1, Twin District Center, Rohini Sector 10, Delhi- 110085

Dear Sir,

Re: Summer Project Report

Attached herewith is a copy of my summer-project report Catchment Analysis which I am submitting in order to mark the completion of an 8-week summer project at your organization. This report was prepared by me using the best of practices and summarizes the work performed on the project and is being submitted in partial fulfillment of the requirements for award of diploma.

I would like to mention that the overall experience with the organization was very good, and helped me to know how work is carried out in real practice with the help of your esteemed organization. I feel honored that I got an opportunity to work with Company Name, a company of great repute. I hope I did justice to the project and added some value to the organization. Suggestions/comments would be appreciated.

Yours truly, MAYANK ARORA

Birla Institute Of Management Technology

Letter of Authorization

I, Mayank Arora, a student of Birla Institute of Management Technology (BIMTECH), hereby declare that I have worked on a project titled Catchment Analysis during my summer internship at SHOPPERS STOP (ROHINI), in partial fulfillment of the requirement for the Post Graduate Diploma in Management program.

I guarantee/underwrite my research work to be authentic and original to the best of my knowledge in all respects of the process carried out during the project tenure.

My learning experience at SHOPPERS STOP, under the guidance of MR. NIKHIL BHASIN, RETAIL OPERATION MANAGER, and Prof. KAPIL GARG, faculty BIMTECH, has been truly enriching.

Date: JUNE/22/2012

Mayank Arora

10

Birla Institute Of Management Technology

EXECUTIVE SUMMARY
Many a times it has been seen that many department stores compete for the same set of consumers in a catchment or in mall. In terms of merchandise, the quality, style and texture of national brands are similar across different department stores. Due to which customers have a lot of choice in terms of stores especially for apparels. In order to differentiate themselves from their competitors and to attract a large pool of customers it becomes necessary to know who your customers are, their profiles, where they come from, their preferences and behaviour. It is very important to understand the customer so as to retain them as well as to bring in new customers which would increase the store`s business, company`s image and lead to growth & development. This study will indicate customer`s needs, their expectations and how they can be dealt/satisfied accordingly. The store started its operations in July 2010 in the premises of Hotel Crown Plaza, Sec-10, Rohini. It has become a critical issue now to understand the customer base to a large extent so that the store could perform better and may try to gain competitive edge, therefore this study will enable us to know the customers in an efficient manner & making feasible changes in the store operations & marketing initiatives. The project aims at: To analyse customer profiles & purchase behaviour for improving sales by sound customer retention practices & attracting new customer base through targeted marketing initiatives. To understand customer perception about Shoppers Stop & its competitors To highlight new opportunities which could be exploited in order to increase footfalls

Key findings:

11

Birla Institute Of Management Technology

INTRODUCTION
A retailer being aware of his customers, what they shop for and understanding their needs would go a long way in building loyalty.

This is particularly useful for store-level marketing initiatives. Such initiatives are crucial to retail and yield rich dividends within a short period of time and therefore offer better ROI on the marketing spends. One of the crucial elements of store-level initiatives is the quality of service being delivered, which directly affects the store brand and loyalty - thereby resulting in growth or otherwise of that store. If the store staff knows about the catchment area, they can not only leverage this directly through marketing initiatives but also use this to help customers and deliver outstanding customer service. First, understand the physical dimensions of the catchment area. This varies from format to format and there are several parameters that need to be factored in. Factors such as psychological barriers, which could be having to cross a major or busy road or taking a diversion due to some construction. Next is an estimate of the number of households and the profile of such households. Finally, one needs to understand the basket composition and buying behaviour of the customers in the catchment. These could be very distinct and differ from even locality to locality. Last but not the least is to map the competition in the catchment. As the old saying goes knowing your competitor well is half the battle won. This information not only helps in developing effective tactics to counter the competition but can also be used as a powerful service element.

CUSTOMER PROFILING Understanding who your customer is and how to locate them is a critical part of any business success. Customer profiling is based on building common definitions that groups of people will fit into. If you are trying to expand your market, find a new location, or just better understand your existing customers so that you can better market to them - then customer profiling is vital.

12

Birla Institute Of Management Technology

Goals: Find out "who" your customer is Gain a foundation for successful marketing & selling activity Use customer profiles to help select profitable sites

Types of customer profiling: 1. 2. 3. 4. Demographics: Age, gender, family life cycle & income. Psychographics: Beliefs, opinions, interests, lifestyle, values, religion. Geographic: Urban, Sub-urban & Rural. Product Use Statistics: Non-Users, Medium-light Users, Heavy Users.

CONSUMER BUYING BEHAVIOUR The central focus of marketing is the consumer. To devise good marketing plans, it is necessary to examine consumer behavioural attributes and needs, lifestyles, and purchase processes and then make proper marketing-mix decisions. The study of Consumer behaviour includes the study of what they buy, why they buy, how they buy, when they buy, from where they buy, and how often they buy. An open-minded consumer-oriented approach is imperative in todays diverse global marketplace so a firm can identify and serve its target market, minimize dissatisfaction, and stay ahead of competitors. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. COMPETITION MAPPING Competition mapping is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Traditional environmental scanning places many firms at risk of dangerous competitive blind spots due to a lack of robust competitor analysis. Superior knowledge of rivals offers a legitimate source of competitive advantage. The raw material of competitive advantage consists of offering superior customer value in the firms chosen market. A common technique is to create detailed profiles on each of your major competitors. In addition to analyzing current competitors, it is necessary to estimate future competitive threats.

13

Birla Institute Of Management Technology

CATCHMENT AREA ANALYSIS A catchment Area may refer to the area & population from which a facility or region attracts visitors or customers. The geographical area served by any institution. Catchment analysis pre launch would ideally decide the product mix and formats of the stores. Catchment analysis done after a time gap of launch would also give a correct picture of what is happening and where to concentrate market energies to get more walk-ins. The catchment area for a retail outlet is the geographic area from which a customer is prepared to travel to reach that outlet. Because a retailer is fixed to a specific location they rely upon encouraging customers to travel a set distance to purchase their product. Depending upon the types of products being sold determines if the retailer is attracting only passing trade or becomes a destination site.

14

Birla Institute Of Management Technology

COMPANY BACKGROUND

Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India. It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 51 large format department stores and online presence. From its inception, Shoppers Stop has progressed to become a premier Fashion & Lifestyle destination for the family. Today, Shoppers Stop is known for its superior quality products, services and above all, for providing a complete shopping experience. With an immense amount of expertise and credibility, Shoppers Stop has become the highest benchmark for the Indian retail industry. In fact, the companys continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today.

Business divisions:
Shoppers Stop Shoppers stop offers customers an international shopping environment and a world-class shopping experience through its 53 stores in 22 cities. It houses a host of international and domestic brands across categories such as apparels, accessories, cosmetics, home & kitchenware and also its own exclusive brands. Some international premium brands retailed at Shoppers Stop are Austin Reed, MUSTANG, Calvin Klein jeans, French Connection, Tommy Hilfiger, Esprit, UCB, Lancme, Guess, Mango, Jack & Jones and US POLO, to name a few. HomeStop HomeStop is a first-of-its-kind premium home concept store present in 7 cities at 9 locations. It offers a wide range of home products across categories along with some of the most reputed national and international brands. It is a onestop for all home needs ranging from home dcor to furniture, bath accessories to draperies, and carpets to health equipments, all under one roof.

15

Birla Institute Of Management Technology

Crossword Crossword is the leader in the lifestyle bookstore category with a unique product mix of books, magazines, CD-ROMs, music, stationery and toys. This is further enhanced with services like Dial-a-Book, and facilities like Gift Vouchers and Return, Exchange, & Refunds policy. Currently, there are 83 Crossword stores in operation HyperCITY HyperCITY has redefined the experience of Indian consumers in the big box mixed retail format. Its offerings include food and grocery, general merchandise and apparels. The business operates a More to Discover byline and delivers quality products at a great value. HyperCITY operates 10 stores, one each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, and Hyderabad and 2 stores each in Mumbai and Bangalore. Mothercare & Early Learning Centre (ELC) Shoppers Stop Ltd (SSL) has exclusive arrangements to open Mothercare and ELC shop-in shops in India. Mothercare, UKs premium international brand for maternity, infants, and childcare products , currently has 34 stores of Mothercare, including 7 stand alone stores with a presence in 11 cities. Early Learning Centre (ELC), UKs number one educational toy brand for children up to 6 years is also available in select Shoppers Stop stores. Estee Lauder Group of companies Shoppers stop has entered into a non-exclusive retail agreement with world renowned cosmetics major Estee Lauder to open stores for international brands like M.A.C, Estee lauder and Clinique in India. Airport Retailing. The Company currently has 1 store at the Hyderabad domestic airport and 3 stores at Bangalore domestic airport. 4 Duty free stores are run by a JV company in the international airport at Bangalore. Timezone. Shoppers Stop believes that Indian consumers are looking for multiple options to entertain themselves and their families. It has forayed into the entertainment sector with a stake of 46.89% in Timezone Entertainment Private Limited, which is in the business of operating Family Entertainment Centers (FECs). It currently has 14 doors in leading metros.

16

Birla Institute Of Management Technology

LITERATURE REVIEW
Customer profitability analysis: an Activity-Based Costing approach The impact of activity-based costing (ABC) on customer profitability analysis (CPA) has attracted relatively little attention in the management accounting literature. CPA is justifiable if the cost-benefit of compiling the information is favourable and the outcome of any subsequent strategic decision leads to income increases. For example, the average length of time spent taking a customers order might be measured and then applied as a weighting factor to the number of telephone calls made. Sales representatives planning sheets or an associated computerized system could provide statistics regarding the number and distance of customer visits. Alternatively, an estimated number of calls per customer, weighted according to the distance of the visit, might be used as a basis of allocation of sales-support costs. Inventory-support and holding requirements, too, are often customer-specific with a direct impact on their relative profitability, as shown in Table IV. Customers requiring immediate deliveries will necessitate the organization holding greater inventory levels. The increased costs of storing inventory can be assigned to such customers using weighting factors. Decisions can be made to change the characteristics of a customer from profitable to unprofitable, but the success of such decisions depends on the accuracy of the information provided in the CPA. While ABC can improve the accuracy of such information Argument: If customers really want frequent deliveries in small-lot sizes, and an alternative supplier can meet the customer needs, then activity analysis might be misleading the supplier. This assumes that the supplier is prepared to decline the customers business and allow a competitor to supply that customer. Using ABC in a customer profitability analysis, the supplier may indeed accept that the customer is unprofitable and be willing to meet the customers needs. To cite this document: Malcolm Smith, Shane Dikolli, (1995),"Customer profitability analysis:: an activity-based costing approach", Managerial Auditing Journal, Vol. 10 Issue: 7 pp. 3 - 7 Permanent link to this document: http://dx.doi.org/10.1108/02686909510090276

17

Birla Institute Of Management Technology

Leveraging customer competency in service firms Customer as a participant, human resource or partial employee in the service delivery process has revealed a decided consensus that they are often inseparable from the service delivery process and therefore they need to be managed as a critical resource of the service firm. Chase, for example, concludes that service firms choices of customer contact strategies affect their resultant levels of production efficiency. He prefers decoupled operations that attempt to buffer the operations technological core by removing the customer from more and more process steps to reduce the inefficiencies normally associated with customer presence in the system. On the contrary customer participation in service firms is vital e.g. clients must provide receipt information to the accountant, or patients must provide lab samples for testing. Often, service processes are viewed as intangible in that they are not goods or materials that can be handled, tasted, and otherwise physically consumed. Service processes need to be assessed from two points of view: (1) Inherent potential for service delivery error due to poorly specified blueprints; e.g. automation or standardization become viable as well as costeffective. (2) The role scripts defining the character of customer interaction with steps in the system, where customer needs may outweigh operational goals of efficiency and productivity. Conclusion Most service firms try to manage employee competences via appropriate human resource practices. In this paper, the focus has been on how to use the tool of market segmentation on the basis of customer competency. In summary, segmenting demand by competency requires a methodology for separating customers into distinct classes of consumers based on meaningful and measurable competency variables related to generic consumer, product core and firm specific service tasks. it requires the service firm to position each competency class at discrete points across the competency continuum by devising reasonable cognitive, behavioural and affective anchors to describe customers that belong in each class. To cite this document: Bonnie Farber Canziani, (1997),"Leveraging customer competency in service firms", International Journal of Service Industry Management, Vol. 8 Issue: 1 pp. 5 - 25 Permanent link to this document: http://dx.doi.org/10.1108/09564239710161051

18

Birla Institute Of Management Technology

Retailer use of geodemographic and other data sources: an empirical investigation.

The need for pertinent information is not confined to decisions regarding location and catchment analysis, but also encompasses issues such as category management, merchandising, marketing communications and relationship marketing. This need for information, it might be presumed, could be met through the utilization of marketing databases, but there is an apparent lack of evidence relating to the extent of database utilization in this context. Explores the development of database and geographic information systems (GIS) as an aid to strategic retail decision making. From a retailer perspective, tabular data are likely to include information from diverse sources such as customer transactions, surveys, and merchandising. The power of a GIS lies in the fact that it can manage data from a number of sources, provided there is an identifiable link between data, and the data has a geographic element (e.g. postcode). As a result, the development and subsequent diffusion of geodemographic databases was seen as being expressly relevant for retailers, they may wish to study the purchasing behaviour of catchment populations, monitor competitive impact, and/or set targets based on individual stores physical, marketing and catchment area attributes. The capabilities of most GIS allow data to be compared temporally as well as geographically, facilitating identification of trends and patterns. In this way, it can be assessed if the current retail strategy still meets the needs of its catchment area. At a tactical level, merchandise can be more closely matched with the needs of a stores customers IKEA uses geodemographics to identify appropriate localities for its catalogue distribution. Conclusion It would seem that having invested in the appropriate technology, and developed the relevant databases; all that remains is for retailers to perfect the necessary skills and abilities to harness the full potential of such systems. The future is likely to see greater use of real-time data for analysing catchment areas and as far as geodemographics are concerned, the cost of data analysis may lead to less use of the generic systems but a move towards more tailored client-based geodemographics linked with lifestyle databases, overlaying transactional data. To cite this document: Lisa O'Malley, Maurice Patterson, Martin Evans, (1997),"Retailer use of geodemographic and other data sources: an empirical investigation", International Journal of Retail & Distribution Management, Vol. 25 Issue: 6 pp. 188 - 196 Permanent link to this document: http://dx.doi.org/10.1108/09590559710175935

19

Birla Institute Of Management Technology

Profiling the mobile customer- Is industry self-regulation adequate to protect consumer privacy when behavioral advertisers target mobile phones?
-Nancy J. King and Pernille Wegener Jessen Mobile customers are increasingly being tracked and profiled by behavioural advertisers to enhance delivery of personalized advertising. This article explores how to best protect consumers privacy and personal data through available mechanisms that include industry self-regulation, privacy-enhancing technologies and legislative reform. Potential harms: Interference with consumers rights of data protection, including the right to adequate notice and to give consent for personal data collection and processing Being subjected to pervasive and non-transparent commercial tracking Increased generation of unwanted commercial solicitations (spamming) Increased exposure to data security risks such as identity theft and fraud Solutions A privacy impact assessment (PIA) is usefully defined as a process whereby a projects potential privacy issues and risks are identified and examined from the perspectives of all stakeholders, and a search is undertaken for ways to minimize privacy concerns According to David Flaharty, privacy impact assessments can be customised to the needs of any organisation. The essential goal is to describe personal data flows as fully as possible so as to understand what impact the innovation or modification may have on the personal privacy of employees or customers and how fair information practices may be complied with A Privacy-enhancing technology (PET) is something that reduces or eliminates the risk of contravening privacy principles and legislation, minimizes the amount of data held about individuals, or empowers individuals to retain control of information about them. Industry codes or company privacy policies, these codes and policies explain the information practices that industry associations or individual companies have promised to follow for the collection, processing, and distribution of individuals personally identifying information. http://www.sciencedirect.com/science/article/pii/S02673649 10001469

20

Birla Institute Of Management Technology

PROBLEM DEFINITION
If all retail centres were alike, offering exactly the same shops and services with regards to price and quality then we could assume that the population within the catchment would spend all of its money in the nearest centre. However, different centres are not the same and peoples mobility means that they will often travel to their preferred destination instead of their closest one. An important element of the study is therefore to provide a robust assessment of the current catchment area of the retail store. If you want your business to be successful you have to understand their buying behaviour especially in todays competitive world. Unless you understand is is very hard to gain them as customers and keep them loyal. The store started its operations in July 2010 in the premises of Hotel Crown Plaza, Sec-10, Rohini. It has become a critical issue now to understand the customer base to a large extent so that the store could perform better and may try to gain competitive edge, therefore this study will enable us to know the customers in an efficient manner & making feasible changes in the store operations & marketing initiatives.

APPROACH TO THE PROBLEM

Data collection was through primary sources only. A questionnaire was developed in accordance with the objectives seeking definite responses. The report provides an analysis of Catchment area, from where the customers are coming; customer profile, buying behavior, and competition mapping, for these purpose customers were interviewed in order to assess not just their responses but their attitude towards some of the finest departmental stores. Upon collecting the required responses they were then tabulated and interpretations were drawn. On the basis of customer interaction, observations, informal interactions with the employees and data interpretation, certain recommendations were made to improve store efficiency.

21

Birla Institute Of Management Technology

RESEARCH METHODOLOGY
The system of collecting data for research projects is known as research methodology. Research methodology is a collective term for the structured process of conducting research and the term is usually considered to include research design, data gathering and data analysis.

Research Design
The design of the study undertaken is exploratory and descriptive in nature. Since the factors responsible for Customer Behaviour are extremely varied and are subject to individual perception, it was imperative to carry out an exploratory research. This exploratory research relies heavily on the informal discussions with the Customer Care Associate (CCA) and management as well as general observations. These facts helped substantially in formulating the research findings and recommendations.

Population
In order to conduct the sampling we first have to define the target population. The Population is the collection of elements that possess the information sought by the researcher about which inferences are to be made. It must be defined precisely. Imprecise definition of the target population will result in research that is ineffective and can be misleading. Here in this study the population is taken as the customer base of Shoppers Stop, Rohini.

Sampling
Sampling is the process of selecting units from a population of interest so that by studying the sample we may generalize our results back to the population from which they were chosen. Generalizing the result from sample back to population is often known as External Validity. Also, sampling is done by the researchers mainly due to 2 reasons firstly; the cost of conducting a research for the entire population will be too high. Secondly, the population is dynamic and that the individuals making the population may change over time.

Sampling Technique
The researcher must decide as to which sampling technique will be beneficial in accomplishing the research objectives. In this study I have chosen simple random sampling which is a part of Probability sampling. In a simple random sampling each element has an equal probability of selection. This implies that each element is selected independently of every other element. This technique has many desirable features and is easily understood.

22

Birla Institute Of Management Technology

Sample Design
The sample consists of questionnaire filled by the customers or based on the interaction with the customers visiting Shoppers Stop, Rohini. Around 250 customers were approached for responses, out of which 223 customers responded to the questionnaire. The response rate was around 90%. It was found out that 26 questionnaires were partially completed and therefore not included in the final sample.

Sample Size
Sample size refers to the no. of elements to be included in the study. It is a complex decision and involves both Qualitative and Quantitative considerations. The sample size is taken as such that the results obtained can be easily generalized for the population, in order to that higher the Sample Size higher the accuracy. The sample size taken was 197.

Research Instrument
A survey questionnaire was used as the core research instrument. Other data collection techniques include informal interaction with the employees, observations and customer interaction.

Questionnaire Development
In order to analyze the Catchment Area & Perceptual Mapping of customers a questionnaire was prepared that was approved by the Unit Head & Retail Operation Manager after making the suggested changes. The questionnaire contains a mix of both open ended and closed ended questions. The open ended questions are included to get the qualitative inputs of the respondents so as to make the study more comprehensive. The questionnaire aims to find out: 1. 2. 3. 4. Customers awareness about the Shoppers Stop. Assessing their buying behaviour Providing sound customer database highlighting customer profile. Any scope of improvement in terms of service or products at the store.

Data Collection Procedure

A survey was conducted in order to collect the data from the decided 197 sample size, who was then interviewed. All the data collected is primary data. As this study was focused on the in store communication and the image of the store i.e. how customer perception is formed for a particular store. The survey was conducted manually by interviewing potential respondent inside the store. Average time spend on each respondent was between 10 to15 minutes.

23

Birla Institute Of Management Technology

ANALYSIS AND INTERPRETATION

Data Analysis is the process of systematically applying statistical and/or logical techniques to describe and illustrate, condense and recap, and evaluate data. It is the process of evaluating data, using analytical and logical reasoning to examine each component of the data provided. Data from various sources is gathered, reviewed, and then analyzed to form some sort of finding or conclusion. There are a variety of specific data analysis method, some of which include data mining, text analytics, business intelligence, and data visualizations. Objectives: To describe (summarize) the population of interest by describing what was observed in the (study) sample. To use patterns in the (study) sample data to draw inferences about the population represented.

The analysis & interpretation is divided into following four heads: A. B. C. D. Customer Profile Buying Behaviour Competition Mapping Trading Area Analysis

A. CUSTOMER PROFILE 1. Age

According to the demographics & geographic attributes of the customers, a database was formulated using primary data of 197 respondents. The basic purpose was to know the different age groups and analyzing the variations in their purchase behaviour and preference with regard to the particular set of age group.

24

Birla Institute Of Management Technology

AGE
2.50% 2% 6.10%

14.20%

10-20. 20-30 30-40 40-50

26.40%

48.80%

50-60 60-70

Analysis: As the Data was gathered through questionnaire, the respondents were classified in age intervals ranging from 10-20 till 60-70. Data was analyzed and categorized according to the intervals. The above data was tabulated & their respective frequency, percentages & cumulative percentages were calculated. From the above pictorial representation of the data, it was found out that 48.7% customers are within the age group of 20-30. Thus the major customers of SSL, Rohini are within 20-30 years of age.

2. Profession
The respondents were further classified on the basis of their occupation mainly into four categories i.e. Business, Service, Student & Housewife. The study aimed at knowing this composition so as to find new ways to attract people of varying profession accordingly.

25

Birla Institute Of Management Technology

PROFESSION
10.70%

24.90% 16.20%

Business Service Student Housewife

48.20%

Analysis: From the above pictorial representation of data it was found out that 95 people of the total sample size i.e. 48.2% of the customers are engaged in service & 24.9% are self employed. Thus, the major customers are service class; further the store should focus on its strategic positioning so as to attract more of business class people.

3. Tenure of Your Association

The objective is to calculate that customer base of SSL, Rohini who were the customers of Shoppers Stop much before the opening of the store in Rohini. The study would help in knowing the ways to retain old customer base.

How long you have been associated with Shoppers Stop?

7.60% 15.20% 24.90% 16.80% 18.70% First Visit Less than 6months 6months-1year 1-3years 16.80% 3-5years More than 5years

26

Birla Institute Of Management Technology

Analysis: All the respondents were bifurcated on the basis of from how long they have been shopping at Shoppers Stop; it can be at any store across India. Thereby while conducting research it became clear that 60.5% of the customers were the old customers who used to shop with SSL prior to the store at Rohini. The staff behavior should be decent & welcoming so as to retain old customers, further the store can also keep all the customers updated about the promotional schemes to be launched in advance.

Age (Binned) * How long you have been associated with Shoppers Stop? Cross tabulation Count How long you have been associated with Shoppers Stop? Less than 1-3years Age (Binned) 10-20 20-30 30-40 40-50 50-60 60-70 Total 2 18 11 6 0 0 37 3-5years 1 20 8 4 0 0 33 6months-1year 2 16 11 3 1 0 33 First visit 4 2 4 3 1 1 15 6months 2 18 5 3 2 0 30 More than 5years 1 22 13 9 1 3 49 Total 12 96 52 28 5 4 197

The above table shows the age wise distribution of people as to how long they have been coming to Shoppers Stop. It depicts that 50.42% of the old customers are within the age group 20-30years. B. BUYING BEHAVIOUR

1. Tracking the frequency of customers visiting store.

Respondents were asked about their visit to the store in order to ascertain whether they make periodic visits & if yes what is the frequency. Options were given like Often, Rarely, Regularly & Not applicable. Not applicable for those customers who visited the store for the first time.

27

Birla Institute Of Management Technology

Frequency of your visit to Shoppers Stop?

6.60%

31% 28.40%

Often Regularly Rarely NA

34%

The above table & pie shows the frequency of the customers visiting the store. It can be seen that 34% customers visit regularly, 31% of them visit often, and 28.4% visit rarely and 6.6 % had chosen Not Applicable as it was their first visit to SSL.

Age (Binned) * Frequency of your visit to Shoppers Stop, Rohini? Crosstabulation Count Frequency of your visit to Shoppers Stop, Rohini? NA Age (Binned) 10-20 20-30 30-40 40-50 50-60 60-70 Total 4 1 4 2 1 1 13 Often 4 37 13 6 1 0 61 Rarely 4 26 12 12 1 1 56 Regularly 0 32 23 8 2 2 67 Total 12 96 52 28 5 4 197

The above table shows that there is no regular visitor in the age group 1020years and only .5% customers above 50years. 2. Most Preferred Department The aim of this question was to assess the most likeable department of the customers so that more focus could be laid upon it & also efforts could be made to improve the department which gets the negative response in terms of preference & relatively lower purchases by the customers.

28

Birla Institute Of Management Technology

Which department you like to visit first to start shopping with?

7% 4% 12% 18% 10% 28% 21% Ladies Ethnic Ladies Western Men`s Casuals Men`s formal Non Apps $ Leather Kids & Mothercare Home

One can easily make out from the above table & pie that 28.4% of the customers prefer to buy from Men`s casuals which tops the list of customer preference. On the contrary 3.6% customers visited Home department which is a setback to the store`s business.

3. Most Preferred Shopping Time In order to understand the mismatch in target footfalls i.e. fluctuating walkins, a pattern of the customer visits need to be known. Every store must analyze the time of high footfalls & prepare well to keep consistency in footfalls throughout the period.

29

Birla Institute Of Management Technology

Favorable Shopping Time.

0.50% Start of the month Mid of the month 9.14% 59.89% 10.66% End of the month No such preference weekends

19.80%

The pie reflects the favorable shopping time, 59.89% of the respondents replied that there is no such preferred time for shopping, whenever there arises a need for something they resort to shopping. 19.8% of the customers replied that they are more comfortable shopping in starting of the month. 4. Why Do You Visit Shoppers Stop? It is an attempt to know that what makes people revisit the store, certain options were given like whether they come for assortment, quality of merchandise, promotional offers or customer service.

What brings you to Shoppers Stop?

Product Assortment Product Quality Promotional Offers Customer Service Store Visibility

The pictorial representation clearly reflects that 32.5% of the customers comes or revisit the store because of good product quality, so it can be assumed that the majority of customers have not got any quality related issues.

30

Birla Institute Of Management Technology

Age (Binned) * What brings you to Shoppers Stop? Cross tabulation Count What brings you to Shoppers Stop? Customer service Age (Binned) 10-20 20-30 30-40 40-50 50-60 60-70 Total 0 18 9 5 1 1 34 Product assortment 2 28 17 7 3 1 58 Product quality 9 31 17 6 1 0 64 Promotional offers 1 19 9 9 0 2 40 Store visibility 0 0 0 1 0 0 1 Total 12 96 52 28 5 4 197

The table depicts that 48.44% of the customers coming for product quality fall under the age group 20-30years and also that old people prefer to have good product assortment while they come for shopping.

C. COMPETITION MAPPING
Objective: Process : To Map the competitors of Shoppers Stop, Rohini.

Parameters for the analysis: Price Range, Services Offered, Variety, Style/Design, Brand Name, Store Layout, Store Ambience & Quality Lifestyle, Pantaloons & Ritu wears Big Life was chosen as the competitors for the comparative study. A scale of 1-4 was opted for the evaluation 1- Poor, 2- Average, 3- Good, 4- Excellent

31

Birla Institute Of Management Technology

PRICE RANGE
80 70 60 50 40 30 20 11 10 0 SS LS P RW 4 39 34 28 18 17 11 59 53 44 39 33 54 1 2 3 4 67 61

SERVICES OFFERED
90 80 70 60 50 40 30 20 10 1 0 SS LS P RW 6 0 22 59 77 64 57 55 50 50 54 1 2 3 4 19 19 21 18

32

Birla Institute Of Management Technology

VARIETY
90 80 70 60 50 40 30 21 20 10 0 SS LS P RW 5 4 20 17 13 16 39 45 39 54 43 79

63 57 57 1 2 3 4

STYLE/DESIGN
80 70 61 60 52 50 40 30 20 10 2 0 SS LS P RW 0 16 7 15 17 11 19 43 46 1 2 3 4 75 68 67

73

33

Birla Institute Of Management Technology

BRAND NAME
120 111

100 77 70 58 45 40 29 21 20 2 0 SS LS P RW 1 2 6 13 15 14 33

80

75 1 2 3 4

60

STORE LAYOUT
100 90 80 70 60 50 40 30 20 10 0 0 SS LS P RW 2 0 16 15 14 17 13 55 59 53 68 61 59 54 1 2 3 4 86

34

Birla Institute Of Management Technology

STORE AMBIENCE
100 90 80 70 60 50 40 30 20 10 0 0 SS LS P RW 3 0 14 18 16 16 10 51 53 56 53 52 89 76 65 1 2 3 4

QUALITY
90 80 70 60 50 40 30 20 10 0 0 SS LS P RW 1 12 16 8 9 9 22 67 64 57 77 65 60 58 47 1 2 3 4

The above graphical representations depict the ratings given by respondents on the parameters chosen for the comparative study.

35

Birla Institute Of Management Technology

COMPARATIVE CHART
PARAMETERS Shoppers Stop Price Range 2.81 Services 3.48 Offered Variety 3.03 Style/Design 3.22 Brand Name 3.74 Store Layout 3.59 Store 3.60 Ambience Quality 3.36 TOTAL 26.83 STORE NAME Lifestyle Pantaloons Ritu Wears 3.06 2.61 2.46 3.24 2.48 2.49 3.07 3.38 3.47 3.36 3.43 3.33 26.34 2.54 2.61 2.61 2.52 2.47 2.57 20.41 2.53 2.66 2.57 2.44 2.48 2.70 20.33

A mean is calculated using the rating given by the customers on all eight parameters.

On totaling the ratings of all parameters for a particular store, we come to know that Shoppers Stop stand at the first position followed by Lifestyle, Pantaloons and Ritu wears.

36

Birla Institute Of Management Technology

D. TRADING AREA ANALYSIS Trade area analysis is a methodology, process or technique that provides a basis for understanding, visualizing and quantifying the extent and characteristics of known or approximated trade areas. Trade area analysis and mapping tell you:

Where a store's customers are coming from How many customers you have in a trade area Where to look for more customers

TRADING AREA ANALYSIS

8% 17% PRIMARY SECONDARY 66% TERTIARY

Other areas include 9% of the customers who are mainly out station residents or belong to very far off places of Delhi NCR, so it will not be appropriate to consider them in any of the catchment area.

Inference: Above graph clearly shows that 66% of customers at Shoppers Stop are coming from primary catchment. These primary catchment areas can be easily reached by both metro & road. 17% of customers at Shoppers Stop are coming from secondary catchment. Secondary areas are within the radius of 5-10Km. 8% of the customers are coming from tertiary catchment area.

37

Birla Institute Of Management Technology

Primary Catchment: The primary catchment is within 0-5Km radius of Hotel Crown Plaza where Shoppers Stop is located. The areas are: Rohini Pitampura Delhi Tech University Shalimar Bagh Budh Vihar Ashok Vihar Vijay Vihar

Above map clearly shows the primary catchment area of Shoppers Stop, Rohini. Secondary Catchment: The Secondary Catchment is within 5-10Km radius of the store. The areas are: Paschim Vihar Puth Khurd Karan Vihar Mangolpuri Jahangirpuri Kanhaiya Nagar Inderlok Keshav Puram
Birla Institute Of Management Technology

38

Tertiary Catchment: The tertiary catchment is within 10-15kms Shoppers Stop. The areas are: Rani Khera Khera Khurd Model Town Adarsh Nagar Azadpur Shastri Nagar Mundka Patel Nagar Moti Nagar Kirti Nagar Punjabi Bagh

39

Birla Institute Of Management Technology

RESULT & CONCLUSION

48.7 % of the customers are within the age group of 20-30 years i.e. majority customer base is youngsters. 48.2% of the customers are service class. 60.5% of the customers are old customers i.e. those who have been associated with the shoppers stop much before the store at Rohini came into existence. 7.6% of the customers visited the store for the first time, so the store is successful in attracting new customers, it also signifies that people in the catchment area have started making repeated purchases. 34% of the customers visits SSL, Rohini on a regular basis, this can be termed as loyal customer base. 43% customers like to start shopping in ladies section which makes it most preferred department. 59.89% customers respond that there is no preferred time for shopping, they shop whenever there is a need or simply depends on mood. 32.5% customers like product quality whereas only 17.3% customers visit the store for customer service. The scope of outstation candidates can increase in future because the store is located in the premises of Hotel Crown Plaza. Home department is not generating desirable business as only .03% customers prefer it. There is an inverse relationship between number of old customers and age. Shoppers stop is at the first position when compared to its competitors followed by Lifestyle, Pantaloons and Ritu wears. Revenue generation from secondary & tertiary catchment area is very low. There are many areas which should be the sound catchment area for the store but as such customer penetration is not up to the mark. Many employees do not have proper product knowledge due to which some of them hesitate in providing assistance to customers. Stock replenishment is to happen on every Tuesday, Thursday and Saturday but arousal of many customer complaints regarding variety and stock repetition (private labels) made it inefficient. The tertiary area of Shoppers Stop, Rohini & primary catchment area of Shoppers Stop, Rajouri is common.

40

Birla Institute Of Management Technology

LIMITATIONS & CAVEATS

The project is limited to Shoppers Stop, Rohini. There is a chance that a respondent (Customer) may be biased in terms of product characteristics, price, etc. The method of sampling is Random Selection. Customer choice is also based on geographic factors. Sample size for competitors analysis is 143, as only those respondents were considered who have been to all four stores. It is assumed that they will rank better & give a clear view of where we stand as compared to competitors. As the store is located in the premises of Hotel Crown Plaza, sample size includes respondents who cannot be considered in Catchment Area of the store, so there is no point analysing them as they may not visit the store again.

41

Birla Institute Of Management Technology

RECOMMENDATIONS

The store should focus on other age groups as well; only 2.5% customers are within the age group 50-60 years & 2% customers in age group 60-70 years. The management should understand the needs of people belonging to these age groups & try to increase their contribution to sales. More promotional offers are required to lure Housewives & Students in order to increase walk-ins as both the categories perceive shoppers stop as quite expensive. The store may add some value to the shopping experience of old customers by offering new services like personal attention by the CCA apart from persuading them to be First Citizens. In order to attract new customers, more discounts should be offered on In-house brands as it will increase the footfalls & make the private labels familiar to the customer. As Ladies Department is preferred by 43% customers, it is advisable that promotional signages of other departments could be displayed at the heavy traffic areas. Majority of customers does not have any preferred time for shopping which clearly gives an opportunity to attract them & make them visit the store on weekdays to match the target footfalls e.g. the validity period of the coupons issued should be kept considering the footfall pattern of the store. There is a need to focus on stock replenishment by adopting a highly responsive supply chain because customers are not satisfied with the prevailing variety levels, also they can check and take measures against undesirable stock repetition. A strict check on Floor Movement Register is required so as to ensure employees to be present on floor during working hours. Promotional coupons for home department can be given to customers shopping from crossword, cafe coffee day & saloon i.e. a need to have tie up with shop in shop tenants.

42

Birla Institute Of Management Technology

EXHIBIT
Dear Customer, Our aim is to make your shopping experience as memorable as possible. In an attempt to achieve this, we welcome your extremely valuable feedback. Kindly spare your precious time & help us serve you better. 1. 2. 3. 4. 5. Name: .. Contact No: . Age: Profession: . Address:

6. How long you have been associated with shoppers stop? First visit Less than 6 months 6months-1year 3-5Years More than 5 years 7. Frequency of your visit to Shoppers Stop, Rohini? Often Regularly Rarely Not Applicable

1-3Years

8. Which department you like to visit first to start shopping with? Ladies: Ethnic Western Mens casuals Mens formal Home Non apps and leather: Jewellery Fragrances Sunglasses Handbags Kids & Mother Care Footwear

Watches

Travel Bags & Wallets

9. Which is the most preferred shopping time for you? Start of the month Mid of the month End of the month 10. Which brings you to Shoppers Stop? Product Assortment Product Quality

No such preference

Promotional Offers

Customer Service

43

Birla Institute Of Management Technology

11. Rate the following attributes on the scale of 1-4 1- Poor, 2- Average, 3- Good, 4- Excellent

Shoppers Stop Lifestyle

Pantaloons

Ritu Wears Big Life

(a) Price range (b) Services offered (c) Variety (d) Style/Design (e) Brand name (f) Store layout (g) Store ambience (h) Quality

12. Your valuable suggestion(s) on improvement of our store. .. .. .

Best Regards. Shoppers Stop Ltd.

44

Birla Institute Of Management Technology

REFERENCES

1. http://www.thehindubusinessline.com/todays-paper/tpbrandline/article2433676.ece 2. http://maps.google.co.in/maps?hl=en&tab=wl 3. http://www.oppapers.com/essays/CatchmentArea/577036 4. http://en.wikipedia.org/wiki/Rohini_Sub_City 5. http://www.shoppersstop.com/index.jsp.vr

45

Birla Institute Of Management Technology